NMC Health Administrators Secure $250m Funding

NMC Health PLC’s administrators have announced new $250 million financing for the company’s operating business that it says will “create greater financial security” for the troubled hospital operator.

The administrators said the funding, which will be made available to NMC and its subsidiaries, is dependent on certain conditions which it is “close to completing”.

“These conditions will be covered by the start of a second-phase restructuring and as NMC LLC begins delivery of a new three-year business plan,” the administrators said in a statement.

The current NMC management team will remain operational control and all hospitals, medical centres, care facilities and other operations will continue to operate as they have to date, the administrators added.

“This process would allow for the injection of the new funding package to support operations and will stop adverse creditor actions, allowing for an orderly process in the interests of all creditors,” the statement said.

The management team has, in conjunction with the operational team from Alvarez & Marsal, developed a three-year business plan that it says will “deliver continued growth in its core UAE business”.

As part of the business plan, Perella Weinberg Partners have been retained as the investment bank to explore the potential sale of the international businesses and advise on restructuring alternatives.

Progress

Richard Fleming, managing director of Alvarez & Marsal Europe LLP and joint administrator of NMC Health PLC, said “considerable progress” has been made since being appointed administrators “in what remains a complex and challenging situation”.

Fleming thanked the UAE Government “for the protection and support provided to all businesses fighting Covid-19”.

“Our absolute priority has been and remains doing everything we can to help these key workers provide the highest quality patient care and services,” said Fleming.

NMC, once with a market value as high as $11 billion on the London Stock Exchange, started unravelling after unearthing previously undisclosed debt and evidence of fraud, leading to the dismissal of top executives. Its downfall has roped in lenders including Barclays Plc, Standard Chartered Plc and the biggest banks in the United Arab Emirates.

Justice

Fleming said the administrators remain focused on identifying those responsible for the fraud.

“Alongside delivering increased financial stability for the group, the next phase of the process will see an increased focus on identifying and holding to account those responsible for the illegal and fraudulent actions which created this situation and still pose a threat to the group and its stakeholders,” said Fleming.

“We continue to co-operate with the authorities to ensure that those who have committed illegal and criminal acts are brought to justice.”